Elon Musk’s Twitter followers voted to buy 10% of his shares in Tesla on Monday, wiping $30 billion off the market value of the company.
Morning trading in New York saw Tesla shares fall about 3%, recovering from a premarket drop of 6%.
On Saturday, Musk tweeted that Twitter users would be able to vote on whether to sell 10% of his Tesla stock. As of Sunday morning, more than 3.5 million people had voted yes in the Twitter community poll.
There has been a lot of talks lately about unrealized gains being used as a tax avoidance tactic, so I propose selling 10% of my Tesla stock. Do you support this?” the Tesla CEO asked.
No announcement has yet been made about what, if anything, he will do following the poll’s results.
Unrealized gains have been discussed lately as a way of avoiding taxes, so I propose that I sell 10% of my Tesla stock.
Musk has previously drawn the ire of regulators for posting tweets that moved the stock price of Tesla without first consulting the board or thoroughly vetting the information he provided investors.
After tweeting that he was considering taking Tesla private, the SEC charged him with fraud.
Tesla directors must review all social media posts containing “material” information for shareholders under a court-approved settlement agreement signed by Musk.
In response to Musk’s defiance, the settlement was amended to include a specific list of topics about which he must receive permission before tweeting. It includes tweets regarding the financial condition of the company, production numbers, and new business lines.
Musk receives no salary from Tesla. His 170.5 million shares of Tesla we’re worth $208.3 billion as of the close of trading on Friday. At the price of $1,222.09 per share, 10% would be valued at $20.8 billion.
He has owned 80% of those 170.5 million Tesla shares since the company’s initial public offering in 2010. In addition, he has the option to buy another 73.5 million shares. It’s not clear if those shares would be counted in his holdings if Twitter community convinces him to sell 10% of his stake in the company.